A Customs and Excise operation, that initially focused on Cork Harbour has expanded into a nationwide investigation into VAT payments on yachts and pleasure craft.
Designed to ensure that appropriate VAT rates are paid, a Revenue Commissioners questionnaire sent to boat owners in the Cork area has been followed up by visits from officers who are building a data base of legitimate Irish yachts in the fight against drug smuggling.
An Irish Sailing Association (ISA) spokesman said yesterday that ISA co-operation had not been sought in the investigation but they had received calls from sailors who queried the manner in which the Revenue Commissioners were seeking information.
A Revenue Commissioners spokeswoman said the investigation was to ensure that appropriate VAT is paid on Irish vessels.
The Irish Marine Federation (IMF) said the investigation appeared to be conducted on a national basis. Boat owners in Dublin, Kerry and Donegal had been contacted and in a letter, seen by The Irish Times, asked to produce documents, including invoices, VAT 5 or SAD documentation within a 21-day period.
New boats over 7.5 metres in length are liable to VAT at the country of destination rather than the country of acquisition.
There have been a number of cases where yachts purchased abroad, for example in the UK and having paid the lower VAT rate of VAT 17.5 per cent were imported into Ireland. In such cases owners are obliged to pay the Irish VAT in full and reclaim the UK VAT paid at their own cost.
IMF chairman Bernard Gallagher said: "If you examine, the hidden costs of buying abroad and the high risk of a revenue investigation, I can see no benefit in sourcing boats or equipment outside Ireland. Irish marine outlets are as competitively priced as anywhere in the EU."
A boat is classed as new if she is less that three months old and has been sailed for less than 100 hours. VAT on boats is payable at 21 per cent in Ireland but any boat built prior to January 1st, 1985, that was in EU waters on January 1st, 1993, is deemed to be VAT paid. Second hand boats of any length with VAT paid anywhere in the EU have no further VAT liability, according to the Revenue Press office.
Crosshaven Yacht broker Donal McClement told The Irish Times: "I have not heard of any boats in Cork that has had VAT irregularities. I have no sympathy for anyone who tries to get out of paying VAT. The regulations are explicit. If you are buying abroad be sure of the VAT status before purchase." McClement, the principal race officer for Ford Cork Week 1998, has been in touch with Customs over the investigation and believes tax compliance amongst boat owners is high.
Elsewhere, while sailing hopes for Sydney 2000 got a shot in the arm with the announcement of an extra medal for sailing the ISA also learned with regret that Sydney liaison Paddy Rahilly, a long-standing member of Royal Cork Yacht Club, who had established a team support structure for the squad, died this week.
Mark Mansfield is considering a return to Olympic competition following what looks almost certainly like the reintroduction of the Star keelboat that lost it's status in November 1996 after serving as an Olympic keelboat since 1932.
The International Olympic Committee's decision to add an extra sailing medal now gives the Sydney organisers 11 classes and opens the door to Mansfield's third Olympic regatta in the double-handed class.
"We're delighted about the Star's inclusion because we have shown our prowess in this class in the past," ISA Olympic committee chairman Richard Burrows said yesterday.
In spite of the fact that Mansfield is now without a boat or a crew, his past performance in the build-up to the Atlanta Games would guarantee him regatta expenses under the ISA's performance card system.
A squad of 27 sailors was named this week to represent Ireland at the 72-nation ISAF World championships in Dubai early next season. The ISA squad comprises: Doublehanded open: David Crosbie, Nicholas Smyth, Gerbil Owens, Graham Elmes, Tom Fitzpatrick, Dave McHugh. Doublehanded women: Laura Dillon, Sinead Curran, Karena Knaggs, Maria McGrogan. Keel- boat open: Mark Mansfield, Daniel O'Grady, David Burrows, Peter Coad, Michael Evans, Gerald Beshoff. Singlehanded men: Frank Dillon, Gareth Flannigan, Jon Lasenby. Singlehanded women: Maeve Baxter, Ciara Peelo. Keelboat women: Maria Coleman, Nuala McGrogan, Melissa Evans, Pauline McKechnie. Multihull Open: Ian Wilson, John Mullan.
In Cork Harbour, master Laser sailor David O'Connell of Monkstown Bay Sailing Club leads club mate Paul Swanton into the final race of the Chris Bruen Sailboats Laser Frostbite Series at the Royal Cork Yacht club on Sunday by 20 points. In third place is Michael Bird. Adam McCarthy is five points ahead of newcomer Illan Wall in the Radial division.
